Banking Digital Services: Building Future-Ready Banks with Smart and Sustainable Tech

Banks are prioritizing cost reduction by adopting cloud-native infrastructure and composable architectures to modernize legacy systems and drive operational efficiency. Global capability centers (GCCs) are also helping banks access top talent while fostering innovation. To enhance customer engagement, banks are leveraging generative AI and advanced analytics to enable hyperpersonalized services. Additionally, banks are strengthening cybersecurity with AI-based threat detection and RegTech solutions for streamlined compliance. They are utilizing the “Sidecore” strategy to facilitate digital core upgrades without disrupting legacy systems. Digital wallets, crypto transactions, and digital currencies are expanding financial access, while ESG goals shape sustainable financial products and services.

Both demand- and supply-side trends are covered in Avasant’s Banking Digital Services 2025 Market Insights™ and Banking Digital Services 2025 RadarView™, respectively. These reports present a comprehensive study of digital service providers in the banking industry, including top trends, analysis, and recommendations. The reports also closely examine the leaders, innovators, disruptors, and challengers in this market.

We evaluated 54 service providers across three dimensions: practice maturity, investments and innovation, and partner ecosystem. Of the 54 providers, we recognized 28 that brought the most value to the market during the past 12 months.

The reports recognize service providers across four categories:

• • Leaders: Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, TCS, and Wipro
  • Innovators: Atos, DXC, FIS Global, Genpact, Hitachi Digital Services, LTIMindtree, Virtusa, and Zensar
  • Disruptors: EXL, GFT, Infinite Computer Solutions, Persistent Systems, and Tech Mahindra
  • Challengers: Birlasoft, CGI, Coforge, Happiest Minds, Mphasis, UST, and Unisys

Figure 1 below from the full report illustrates these categories:

“To thrive amid cost pressures, rising cyber threats, and regulatory demands, banks must modernize core systems, embrace cloud-native platforms, and adopt AI-led, zero-trust frameworks,” said Robert Joslin, partner at Avasant. “Investing in advanced technologies is essential for enhancing efficiency and meeting evolving customer demands.”

The reports provide several findings, including the following:

• • Post-tariff tensions are driving banks to boost efficiency, cut costs, and scale 24/7 services to stay competitive.
  • Increasing demand for personalized experience is driving banks to reinvent customer engagement and service delivery.
  • Rising cyber threats, complex fraud tactics, and stringent regulations are pushing banks to strengthen security and comply with regulations.
  • Banks are focusing on mitigating the risks of overhauling legacy systems with more agile and low-risk solutions than complete core replacement.
  • Improving inclusive and real-time financial services using digital payment solutions and broadening access across geographies is a key focus for banks.
  • Growing investor demands and the need for compliance are compelling banks to incorporate ESG principles into their core operations.

“To remain responsive to market shifts, banks need to adopt innovative strategies such as the ‘Sidecore’ model, which brings a parallel core without disrupting legacy systems,” said Payel Maity, senior analyst at Avasant. “Additionally, banks are increasingly using AI to optimize operations with personalized customer experiences and fraud detection.”

The RadarView also features detailed profiles of 28 service providers, along with their solutions, offerings, and experience in assisting banking enterprises in their digital transformation journeys.

This Research Byte is a brief overview of Avasant’s Banking Digital Services 2025 Market Insights™ and Banking Digital Services 2025 RadarView™ (click for pricing).